As the crypto community, which includes government agencies, becomes more and more cautious about security, compliance in the sector takes on a high significance.
Recently, a digital wallet infrastructure platform, Liminal, boasted being appointed by an investigation agency of India to manage seized digital assets in a non-custodial manner securely. Self-custody is considered the most secure way to store digital assets in a wallet completely under user control, with keys only known to the user. As a part of this association, Liminal will empower the agency with secure storage of digital assets, which they impound under their investigations.
The world has begun to talk about self-custody, especially after the FTX debacle. And the crypto community is beginning to seek secure ways of dealing with digital assets, while being without supervision.
The officer in charge of the agency’s cybercrime branch said, “The biggest challenge with centralized exchanges is that the keys are not in our control. We were looking for a tech-savvy solution to be able to seize any assets under investigation without the involvement of a third party. We also wanted to ensure that we enforce strict internal controls over these digital assets by opting for multi-signature wallets, where a group of investigating field officers controls the funds.”
The biggest challenge with centralized exchanges is that the keys are not in our control
While the name of the government agency wasn’t revealed, the above is an indication of governments leveraging CBDCs to boost financial inclusion and increase their control over how digital payments are made.
According to a study by Juniper Research, the value of payments via CBDCs (Central Bank Digital Currencies) will reach US$213 billion annually by 2030, up from just US$100 million in 2023. This radical growth of over 260,000% reflects the early stage of the sector; currently limited to pilot projects. The study says that CBDCs will improve access to digital payments, particularly in emerging economies, where mobile penetration is much higher than banking penetration.
In such an environment, compliance is becoming more and more significant in the blockchain world, where the slightest mistake can cause a transaction to derail in the most catastrophic way. No wonder the G20 Summit 2023 announced that the Financial Stability Board (FSB), the International Monetary Fund (IMF), and Bank for International Settlements (BIS) would soon publish recommendations for establishing a global crypto regulatory framework with India recommending a joint technical paper by IMF and FSB on crypto regulation.
In February, Zeeve, a blockchain infrastructure provider, passed globally-recognized ISO, SOC 2 Type II and GDPR Compliance audit standards.
ISO/IEC 27001:2013 is an internationally recognized and auditable security standard set for the evaluation of any organization’s ability to protect sensitive and confidential data. The standard specifies the requirements for establishing, implementing, maintaining, and continually improving Information Security Management System (ISMS).
SOC 2 is an auditing procedure developed by the American Institute of Certified Public Accountants (AICPA) that ensures service-based organizations manage data securely to protect the interests of businesses and the privacy of its clients. It proves the security level of systems against static principles and criteria.
The blockchain infrastructure space is undergoing dramatic changes as businesses seeking compliant, secure solutions are becoming increasingly discerning. This shift has presented a great opportunity for companies that have taken the pains to meet current regulations and frameworks. As more strictly regulated players join this market, the demand for no-code blockchain infrastructure platforms will only strengthen
The General Data Protection Regulation (GDPR) is the toughest privacy and security law standard in the world. The GDPR sets strict standards for the collection, use, and protection of personal data for individuals within the European Union (EU) and European Economic Area (EEA). Even though it was drafted and passed by the EU, it imposes obligations on organizations anywhere in the world.
Most of the businesses and enterprises today have their own vendor risk management controls that are most fittingly met when they collaborate with service providers possessing widely-recognized certifications and auditor attestations. When a company passes this array of security examinations, the most security-conscious customers can rely on their compliance.
The blockchain infrastructure space is undergoing dramatic changes as businesses seeking compliant, secure solutions are becoming increasingly discerning. This shift has presented a great opportunity for companies that have taken the pains to meet current regulations and frameworks. As more strictly regulated players join this market, the demand for no-code blockchain infrastructure platforms will only strengthen.
Read more: Dust on Crust: Transforming from fiat to crypto
In February, Liminal tied up with Notabene, a crypto travel rule compliance platform to provide an integrated solution for compliant crypto transactions. While Liminal’s blockchain platform enables secure digital asset management, Notabene’s compliance technology ensures that all transactions comply with travel rule requirements.
Such a partnership is expected to benefit the cryptocurrency market by reducing the risk of non-compliance while providing users with a secure and reliable way to manage their digital assets. Industry-leading compliance technology and expertise is becoming the answer to today’s crypto vulnerabilities.
